Our study examines the asymmetric responses of food prices to oil prices in Indonesia as a net oil and food-importing country. We apply non-linear autoregressive distributed lag to investigate the responses of food prices to oil prices. Due to the different impacts of oil price on sub-component of the food price index, this study decomposes the general food prices index into 11 sub-components food price indices. The oil prices asymmetrically affect food prices but incomplete pass-through except the preserved fish prices. The highest impact of oil price is on beans and nuts prices, followed by cereals, roots, and their product prices. | Oil and food prices for a net oil importing-country How are related in Indonesia -
